HSL Prime Research Commodity Weekly Report: 07 September 2026

Global Market Round Up

Commodity markets ended the week on a mixed note, with crude oil and industrial metals extending gains while gold and silver eased from recent highs. The market remained focused on the balance between inflation, interest-rate expectations and global growth.

Gold and silver moved slightly lower during the week as investors took profits following their recent gains, while stronger-than-expected August payrolls data added further pressure on prices. U.S. job growth accelerated sharply in August, while the unemployment rate held steady at 4.1%, pointing to a resilient labour market and keeping the possibility of a September Fed rate hike on the table. The stronger employment data pushed short-term Treasury yields higher and weighed on precious metals. However, President Trump called for lower interest rates following the report, adding a political dimension to the Fed’s policy outlook.

The near-term outlook for precious metals remains volatile, with markets now focused on upcoming U.S. producer and consumer inflation data. A higher-than-expected inflation reading could strengthen expectations for a September rate hike and weigh further on gold and silver. Conversely, in-line or softer inflation data would reduce rate-hike expectations and provide support to precious metals.

Crude oil prices remained elevated on Friday, with WTI trading around $91.2 per barrel and gaining more than 9% for the week, marking its strongest weekly advance since mid-July. The rally was driven primarily by escalating tensions in the Middle East and limited signs of a near-term diplomatic resolution. The latest U.S.-Iran military exchanges have heightened concerns over potential disruptions to regional energy infrastructure and shipping through the Strait of Hormuz. Israel has also warned of further attacks on Iranian infrastructure, including energy-related facilities, while the U.S. has indicated that diplomatic engagement will remain limited until attacks on shipping in Hormuz cease. Iran, meanwhile, has maintained a firm stance following the latest U.S. strikes. Additional sanctions against Iran and the possibility of greater international involvement have further increased uncertainty around regional oil supplies.

Natural gas futures moved higher last week as forecasts for persistent hot weather through Labor Day and into the following week pointed to sustained cooling demand. The late-summer heat is expected to increase power-sector gas consumption, providing support to prices and keeping the near-term outlook constructive.

Looking Ahead: The commodity market enters the new week with focus on U.S. CPI, PPI and OPEC/IEA reports, which could influence inflation expectations and the U.S. dollar. With oil prices elevated, any upside surprise in inflation could trigger broader volatility across commodities and interest-rate markets.